Although the current recession is worldwide, but it appears that it is was primarily meant to take revenge on Dubai. The tourist activities have been reduced here, international companies have shifted their offices and outlets to other regions, and rent in Dubai has gone down. The Eden of Dubai has become the nightmare for the land owners and investors.
Dubai Construction Boom
Dubai had been the heaven for architects, engineers and labour forces. The people here did afford to experiment with new construction ideas. The architects from all around the world used their imaginations in making the buildings unique. Dubai is home to many construction marvels, there are about 60 buildings which are taller than 200 meters, making it the only such city of the world with so many skyscrapers of this sort. The tallest building of the world i.e. Burj Khalifa has become the new icon for the city along with Burj Al Arab.
The city beats all fancy tourist destinations and offers pearly beaches, world class hotels, outrageous night life, extra ordinary water parks, fashion fairs, shopping festivals and never ending list of exciting things to do. The Dubai properties business is now deflating and affecting the entire city.
Downfall of Dubai Real Estate
Just a decade ago,Dubai real estate was a promising sector for investors as well as the labourers, envious new housing and commercial projects, keen international investments, increasing interest of the global tycoons and consequently a huge population influx was witnessed in Dubai.
It was during late 2008 that some of the construction companies were declared bankrupt. This alarmed the investors and they made quick measures to secure their money. The employers shifted their business, dozens of offices closed down; thousands of the immigrants lost their jobs and they could no longer afford the property rents here. Since Dubai doesn't have that much oil and its economy relies mainly on the property, this recession was bound to shake everyone. The skyline of city now haunts the landowners, the value of property in Dubai has gone down and there are no tenants and buyers waiting in line.
Developing neighbouring states and its affects on Dubai Property:
Dubai crisis was bound to make the residents of the neighbouring states think twice before investing such huge sums in Dubai propertiesand real estate sector. Life, however goes on, constructions in the neighbouring states have resumed. The owners of property in Abu Dhabi are learning from Dubai's experience and instead of building fancy tall commercial building, the stress here is on residential sector. Investments from other countries like India and Russia is a good sign for the locals.
There is this debate going on at different forums about if the development in these states will have any negative affects on Dubai. The experts believe that in the next couple of years, the former glory of Dubai is likely return and this time it will seep into the neighbouring states too. One neutral view is that this will have no affect on Dubai at all. However one thing is confirmed from the current statistics i.e. the value of Dubai property will increase up to 50% in the next couple of years and that is partly because of the developing neighbouring states.
Dubai Construction Boom
Dubai had been the heaven for architects, engineers and labour forces. The people here did afford to experiment with new construction ideas. The architects from all around the world used their imaginations in making the buildings unique. Dubai is home to many construction marvels, there are about 60 buildings which are taller than 200 meters, making it the only such city of the world with so many skyscrapers of this sort. The tallest building of the world i.e. Burj Khalifa has become the new icon for the city along with Burj Al Arab.
The city beats all fancy tourist destinations and offers pearly beaches, world class hotels, outrageous night life, extra ordinary water parks, fashion fairs, shopping festivals and never ending list of exciting things to do. The Dubai properties business is now deflating and affecting the entire city.
Downfall of Dubai Real Estate
Just a decade ago,Dubai real estate was a promising sector for investors as well as the labourers, envious new housing and commercial projects, keen international investments, increasing interest of the global tycoons and consequently a huge population influx was witnessed in Dubai.
It was during late 2008 that some of the construction companies were declared bankrupt. This alarmed the investors and they made quick measures to secure their money. The employers shifted their business, dozens of offices closed down; thousands of the immigrants lost their jobs and they could no longer afford the property rents here. Since Dubai doesn't have that much oil and its economy relies mainly on the property, this recession was bound to shake everyone. The skyline of city now haunts the landowners, the value of property in Dubai has gone down and there are no tenants and buyers waiting in line.
Developing neighbouring states and its affects on Dubai Property:
Dubai crisis was bound to make the residents of the neighbouring states think twice before investing such huge sums in Dubai propertiesand real estate sector. Life, however goes on, constructions in the neighbouring states have resumed. The owners of property in Abu Dhabi are learning from Dubai's experience and instead of building fancy tall commercial building, the stress here is on residential sector. Investments from other countries like India and Russia is a good sign for the locals.
There is this debate going on at different forums about if the development in these states will have any negative affects on Dubai. The experts believe that in the next couple of years, the former glory of Dubai is likely return and this time it will seep into the neighbouring states too. One neutral view is that this will have no affect on Dubai at all. However one thing is confirmed from the current statistics i.e. the value of Dubai property will increase up to 50% in the next couple of years and that is partly because of the developing neighbouring states.
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